Correlation Between POST TELECOMMU and FPT Securities
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and FPT Securities at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining POST TELECOMMU and FPT Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and FPT Securities JSC, you can compare the effects of market volatilities on POST TELECOMMU and FPT Securities and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in POST TELECOMMU with a short position of FPT Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and FPT Securities.
Diversification Opportunities for POST TELECOMMU and FPT Securities
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between POST and FPT is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and FPT Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPT Securities JSC and POST TELECOMMU is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on POST TELECOMMU are associated (or correlated) with FPT Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPT Securities JSC has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and FPT Securities go up and down completely randomly.
Pair Corralation between POST TELECOMMU and FPT Securities
Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 2.32 times less return on investment than FPT Securities. In addition to that, POST TELECOMMU is 1.07 times more volatile than FPT Securities JSC. It trades about 0.06 of its total potential returns per unit of risk. FPT Securities JSC is currently generating about 0.16 per unit of volatility. If you would invest 4,150,000 in FPT Securities JSC on August 31, 2024 and sell it today you would earn a total of 320,000 from holding FPT Securities JSC or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.26% |
| Values | Daily Returns |
POST TELECOMMU vs. FPT Securities JSC
Performance |
| Timeline |
| POST TELECOMMU |
| FPT Securities JSC |
POST TELECOMMU and FPT Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and FPT Securities
The main advantage of trading using opposite POST TELECOMMU and FPT Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, FPT Securities can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FPT Securities will offset losses from the drop in FPT Securities' long position.| POST TELECOMMU vs. Hanoi Beer Alcohol | POST TELECOMMU vs. PetroVietnam Transportation Corp | POST TELECOMMU vs. Sao Ta Foods | POST TELECOMMU vs. FPT Digital Retail |
| FPT Securities vs. Petrolimex Petrochemical JSC | FPT Securities vs. POST TELECOMMU | FPT Securities vs. South Basic Chemicals | FPT Securities vs. Development Investment Construction |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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